59% of Indian companies suffered financial fraud in 24 months

This marks an 18 per cent improve in comparison with the worldwide common of 41 per cent and a 7 per cent rise inside India because the 2022 survey, PwC India highlighted.

The newest findings spotlight procurement fraud as the highest risk for Indian companies, with 50 per cent of respondents figuring out it as a serious concern. This displays a big 21 per cent soar in comparison with world issues. In distinction, buyer fraud, which was the main concern for 47 per cent of Indian companies in 2022, has been overtaken.

Globally, cybercrime stays a major concern, with 44 per cent of leaders citing it as the highest risk.

Puneet Garkhel, Associate and Chief, Forensic Providers, PwC India, commented, ‘In our 2022 survey, buyer fraud led the listing, reported by 47 per cent of corporations. Nevertheless, this 12 months’s findings reveal a shift with procurement fraud now rising as the first concern.”

Whereas Indian corporations are utilizing information analytics to fight procurement fraud with 52 per cent analysing transactions pre-deal and 46 per cent post-deal, solely 37 per cent make use of real-time fee monitoring with the capability to dam suspicious transactions. The survey suggests efficient fraud prevention methods together with strengthening processes, revising vendor choice, imposing battle of curiosity insurance policies, and coaching the workers. Nevertheless, solely 44 per cent of Indian respondents utilise information analytics to identify uncommon bid patterns.The survey additionally revealed that about 33 per cent of all financial crimes are associated to corruption and bribery, whereas 26 per cent of the respondents in India discovered it to be one of many high three disruptive financial crimes up to now 24 months. About 82 per cent of respondents in India mentioned that they have been assured or very assured about their firm’s compliance programmes’ potential to mitigate corruption dangers.

On the worldwide entrance, 77 per cent enterprise leaders mentioned that they have been assured or very assured about their firm’s efforts on this regard, the survey added.

About 20 per cent of firm leaders in India believed corrupt practices, i.e. these related to corrupt or improper funds to authorities officers and/or business prospects, had elevated up to now 12 months, whereas 34 per cent mentioned that corruption had decreased, the PwC India added.

PwC’s survey reveals a urgent concern over pressured labour throughout industries — from manufacturing to vogue and from agriculture to hospitality.

In India, 16 per cent of corporations are actively addressing this danger whereas 24 per cent evaluating it, 26 per cent are unaware of its significance inside their organisation and 19 per cent recognise it however lack evaluation plans, the survey added.